Data Fragmentation

Effective performance management and communication depends upon reliable and accurate information. Another consequence of organizational fragmentation is a fragmentation of data on an organization's performance (Fig. 6.8). Data is captured separately and kept separately at various business units according to their functional needs, while performance management normally requires simultaneous data inputs from several sections to be analyzed at the same time at regular intervals, in order to assess the energy and environmental or any other performance of the business as a whole.

Further, data fragmentation often leads to data redundancy. Various business units are collecting essentially the same data on their own and usually by different means, so that ultimately such data will differ and create more problems when analyzed by senior managers due to the inevitable inconsistencies. Such practices increase the cost of data gathering and processing and reduce the confidence that managers have in the data.

Organizational and data fragmentation increases monitoring costs and reduces a company's overall performance. For a company's performance data analysis to become a useful tool, however, it is essential that the company understands its strategic goals and objectives, i.e. that it knows the direction in which it wants the business to progress. The relevant performance indicators (PIs) need to be defined in order to assess the present state of the business and to indicate a future course of action. The emphasis is on 'relevant' because the value and importance of information must outweigh the cost of its acquisition and delivery. Identifying only the relevant performance data and determining how they are to be

Customer Satisfaction and Market Share

Figure 6.8 Data Fragmentation and Data Silos

Customer Satisfaction and Market Share

Figure 6.8 Data Fragmentation and Data Silos measured enables companies to monitor performance across the board without getting lost in mountains of meaningless data; a scenario plaguing most companies today.

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